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JPMorgan Chase bet that a long list of new advantages Will keep the wealthy Americans hanging on their sapphire reserve card, despite a heavy bump in its annual costs.
The bank unveiled on Tuesday an update of its premium credit card, which will now pay annual fees of $ 795. This is a leap to 45% compared to its previous level and the largest increase in prices of the issuer of the card for the Sapphire since its launch of 2016.
But JPMorgan says that users will now obtain more than $ 2,700 in annual advantages when the update card will be launched on Monday. This includes most of its previous advantages, as well as new linked to the way customers earn and spend points on a trip and catering.
For example, the bank boasts a new buyout program which doubles the value of the points used for certain travel offers and a new annual credit of $ 500 in its collection of hotels and stations.
There is also a new restoration credit of $ 300 in restaurants which are part of the exclusive tables of the Sapphire reserve networka credit of $ 300 for purchases at Stubhub Or Viagogoand free subscriptions to Apple TV + and Apple Music, worth $ 250 per year, said JPMorgan.
Customers who spend at least $ 75,000 a year on their cards unlock other advantages, including high level status Southwest Airlines And IHG Hotels and stations.
JPMorgan also introduced a new Sapphire reserve business card with annual costs of $ 795 and advantages similar to the consumption card, as well as credits for ziprecruit and Google Workspace. That positions the bank against American Expresswhich has a commercial version of its comparable platinum card for decades.
High -end ambitions
JPMorgan, the largest American bank by assets, shake The card industry with the launch of the Sapphire reserve almost a decade ago. The bank has become a game book established by AMEX by grouping advantages around travel and restaurants, and then opened its own network with luxurious airport salons.
But JPMorgan presented its premium card with signature bonuses and credits that have almost made financial evidence, forcing other issuers to increase their card offers in response.
Now, with high -end JPMorgan with the sapphire reserve, the bank may alienate customers who can choose to demo to a favorite card or Sapphire of Amex or Sapphire Capital Onesaid Bankrate’s principal analyst Ted Rossman.
“When the sapphire reserve was released for the first time, it was a solid part of the middle class that offered a champagne trip to a beer budget,” said Rossman. “These premium cards go more luxury, and I wonder if the costs of $ 800 become too much for some for some.”
This could be by design, according to Rossman. Amex and Capital One had to slow down access to airport Due to overcrowding, and some users have complained that their premium cards no longer feel as special.
That cards and the Sapphire reserve still have a sense of $ 795 in annual costs depends on if customers benefit from enough new advantages, said Rossman.
Later this year, Amex will present updates To its Platinum cards, which currently have annual fees of $ 695. AMEX will probably also increase its annual costs while adding more advantages, said Rossman.
“These broadband cards are not for everyone, that’s for sure,” said KBW analyst Sanjay Sakhrani.
But Amex and JPMorgan continued a subscription type commercial model where a constantly increasing level of advantages makes a convincing value proposal for some customers, he said.
“They believe that it creates a steering wheel around keeping people engaged and spending in the system,” said Sakhrani. “Even at $ 800 in annual costs, I don’t think anyone can provide the extent of the advantages you get on these cards.”
